An investor dataroom simplifies due diligence, collaborative decision-making, and collaboration throughout the deal. It helps investors quickly understand the value of a startup, and provides easy-to-use communication tools to facilitate smooth interactions with multiple stakeholders. Software for investor due diligence is used by those who are responsible for evaluating and making investment decisions, as well as professionals who help clients navigate complex investments as well as decision-makers involved in M&A transactions.
You’ve made assertions in your pitch about intellectual property (IP) of your startup. In the investor data room, present VCs and angels your patent numbers as well as trademarks, patent filings, and other IP assets to ensure that due diligence progresses efficiently.
Your investor data room should be designed to speed up the due diligence process and ultimately, to secure an agreement for funding. To achieve this, you’ll have to create an information room that is organized and has an easy navigation.
A detailed audit trail is also a good idea. It lets you determine how much data has been shared, by whom and at what times. Your team can manage user activity by using fencing view, expiring links watermarking, granular permissions and watermarking.
As you progress through conversations with VCs or angel investors, it’s likely that you will be asked to provide more information. In stage 1 the VC or investor will be looking for data that will support your initial pitch deck, including product-market fit and financial models. In stage 2, they’ll be looking for more specific information about your business model, your traction and staffing.